Jobs grow but unemployment ticks up

New unemployment numbers released Friday reminded Washington of the fragile nature of the economic recovery as lawmakers once again ready for another round of fiscal brinksmanship.

The economy added 155,000 jobs in December while unemployment held steady at 7.8 percent, federal economists reported Friday. The Labor Department last month put the November unemployment rate at 7.7 percent but on Friday revised that number to 7.8 percent.

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The report continues a several month trend of slow and steady job growth, hitting most analysts’ forecasts for the month of around 150,000 new jobs and 7.7 percent unemployment.

The economy operated amid political turmoil in December, as businesses nervously watched Washington’s stop-and-start fiscal cliff negotiations and some predicted the uncertainty would stunt economic growth.

But even after lawmakers’ last-minute cliff deal, policy uncertainty still reigns, as Democrats and Republicans immediately pivoted to a battle over the upcoming debt ceiling limit and spending sequester.

The jobs report became instant fodder for that battle Friday, as Republicans blamed deficit spending for the persistent unemployment.

“Our oversized and overspent federal government is a drag on economic growth and job creation, and has burdened every American with a $50,000 share of its debt, and rising,” House Speaker John Boehner said in a statement. “In the coming months, the House will pass real spending cuts, meaningful reforms of the entitlement programs that are driving us deeper into debt, and a fairer, cleaner tax code.”

Democrats lauded the reported job growth, but they accused Republicans of threatening to undo that growth with another battle over the debt ceiling.

“Republicans are threatening to once again hold the full faith and credit of the United States hostage in order to force cuts to Social Security and Medicare,” Senate Majority Leader Harry Reid said in a statement. “If our recovery is to take off, we must forego this kind of reckless, partisan brinksmanship, and work together to find solutions that work for the middle class.”

And House Democratic Leader Nancy Pelosi also warned against another debt ceiling battle.

“Upcoming debates should not be used as an opportunity for political brinksmanship that simply serves to undermine consumer confidence, jeopardize job growth, weaken our economy, and risk the economic security of the middle class,” said Friday. “With the fiscal cliff averted and middle class tax cuts preserved, Democrats and Republicans must work side-by-side to seek and find solutions to our economic challenges.”

Analysts have warned that a drawn-out fight over the debt ceiling would hurt business and consumer confidence in the economy.

Republicans are insisting that any increase in the debt limit be accompanied by spending cuts.

But President Barack Obama says he will not negotiate over the debt ceiling and argues that the practice of using the possibility of default as a negotiating ploy must end.

The department also revised its count for October, having initially predicted 171,000 — a better than expected result that buoyed Obama’s campaign when it was released just days before the election. The department had already revised its estimate downward once to 138,000, and Friday published a final figure of 137,000.

The department also revised its count for October, having initially predicted 171,000 — a better than expected result that buoyed Obama’s campaign when it was released just days before the election. The department had already revised its estimate downward once to 138,000, and Friday published a final figure of 137,000.

So any conspiracy will do as long as your spoon fed delusion is preserved, huh?

Business owners, the job creators, have been operating amid fiscal turmoil for the last four years. Obama has hindered economy growth with his policies, just like Roosevelt. He intends to spend the US into the ditch, business owners and consumers rightly have no confidence. Corporate taxes remain the highest in the world. Why do business here?

So now that we have Obama in the White House for another four years, and he has gotten his tax increases on the wealth through the fiscal cliff deal and Obamacare taxes, when can we expect his supporters to clamor for a more robust economy and hiring, as well as reduction in the nation's debt and annual deficits. I assume we can all agree that after four years of him and his allies blaming Bush, it is now his economy and he owns it.

Business owners, the job creators, have been operating amid fiscal turmoil for the last four years. Obama has hindered economy growth with his policies, just like Roosevelt. He intends to spend the US into the ditch, business owners and consumers rightly have no confidence. Corporate taxes remain the highest in the world. Why do business here?

New unemployment numbers released Friday reminded Washington of the fragile nature of the economic recovery as lawmakers once again ready for another round of fiscal brinkmanship.

What economic recovery? How long are we going to have to wait? We've been hearing from the left, (liberals, progressives, democrats), that we are coming out of this economic malaise since 2009. It's now 2013. Remember recovery summer 2010?

Noticably missing in this article is that the government employment dropped by over 30,000 in December and 130,000 for the year 2012.

So much for the falsehood that Obama is a big government spender for a bloated government, since it has obviously dropped (and can a lot more).

In my opinion, he is a better conservative than the conservatives (R) in my local government... that have more than doubled it in the last 25 years. We have 8 or 10 persons just in zoning of a rural community of under 18K, ready to pounce on an infraction...even if they have to make up a law to enforce. Their arbitrary and capricious enforcement works for the top of the oligarchy here, but is doing absolutely NOTHING to grow business and employ on Main Street.

The acts of the local Republicans have lost all of my (a conservative) support, since they seem to be the REAL party of big government.

There isn't going to be a debt ceiling fight. Obama doesn't have to negotiate over the debt ceiling at all. If the Republicans won't raise the debt ceiling then Obama can do the Platinum coin option and thus pay the bills any way through the treasury.

So now that we have Obama in the White House for another four years, and he has gotten his tax increases on the wealth through the fiscal cliff deal and Obamacare taxes, when can we expect his supporters to clamor for a more robust economy and hiring, as well as reduction in the nation's debt and annual deficits. I assume we can all agree that after four years of him and his allies blaming Bush, it is now his economy and he owns it.

Yep, he owns it. That's why it is on the mend. Instead of losing 800, 000 jobs a month, we are gaining 150, 000 despite the GOP obstructionism, and attempts to pull out money from the recovering economy with their crocodile tears about increasing debt (which had been doing so for the last 30 years since Reagan).